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Will Analog Devices, Inc. (ADI) Beat Earnings?

Analog Devices, Inc. (ADI - Free Report) is set to report fourth-quarter 2013 results on Nov 26. Last quarter, it posted a 5.6% positive surprise. Let’s see how things are shaping up for this announcement.

Analog provided a modest outlook for the fourth quarter, with revenues expected in the range of $675 million to $700 million, up 2.0% sequentially. The company estimates gross margin to be 65.0%, operating expenses to increase by approximately 1%, tax rate in the range of 14%–15% and earnings per share within 55 cents–61 cents.

Earnings Whispers?

Our proven model does not conclusively show that Analog Devices will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 58 cents. Hence, the difference is 0.00%.

Zacks Rank #4 (Sell): We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

You could consider other stocks with a positive earnings ESP and a Zacks Rank #1, 2 or 3 such as:

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